CHANGES TO TRADE-IN CREDIT ILLINOIS FOR 2022 EXPLAINED

Thank you for visiting our Jaguar dealership’s website. Changes that went into effect on January 1, 2022 have a positive effect on the sales tax credit you can receive. At Jaguar Hinsdale we want our customers to enjoy the full benefits of owning a new vehicle. Below we summarize how car buyers who purchase a new vehicle in 2022, can take advantage of changes to the Illinois Trade-In credit that went into effect on January 1, 2022. All car purchases in 2022 will be eligible to receive the full credit on the trade-in. In 2019 the Retailers’ Occupation Tax Act and the Use Tax Act was amended to provide that the “selling price” included the value of or credit given for the trade-in that exceeds $10,000. Effective January 1st, 2022, the $10,000 trade-in credit limit no longer applies.

ILLINOIS REMOVES TRADE-IN VALUE FROM SELLING PRICE DEFINITION

The amendment that was made to the Illinois Trade-In tax credit changed the definition of “selling price” for vehicles sold in Illinois. The definition of “selling price” in Illinois will no longer include:

• The value or credit given for traded-in vehicles
• The portion of the value or credit for traded-in vehicles that exceeds $10,000

The updates to this statute will require the full value of all trade ins to be excluded from the tax for retail sales.

FULL TRADE-IN TAX CREDIT IS BACK

This change gives car-buyers the ability to save thousands on their trade-in. Prior to 2022, trade-in credits were capped at $10,000. The change made to the Retailers’ Occupation Tax Act and the Use Tax Act gives car-buyers the ability to use the full trade-in amount when calculating the overall Illinois sales tax that is due at the time of purchase.

VALUE YOUR TRADE

SHOP NOW